Strong Crane Segment Boosts Manitowoc Co. Sales 5 Percent

July 30, 2013

The Manitowoc Co. reported sales of $1.05 billion for the second quarter of 2013, an increase of 5 percent compared to sales of $997.2 million in the second quarter of 2012. The sales increase was primarily driven by a 7.6-percent increase in Crane segment sales.

On a GAAP basis, the company reported net earnings of $57.6 million, or $0.43 per diluted share, in the second quarter versus earnings of $45.3 million, or $0.34 per diluted share, in the second quarter of 2012.

“Our second-quarter results are a byproduct of our ongoing focus on and execution of our strategic initiatives that are expected to generate long-term growth and profitability,” said Glen Tellock, Manitowoc’s chairman and CEO. “While a level of caution remains around the broader economic environment, we continue to be confident in the opportunities that lie ahead.”

Second-quarter 2013 net sales in the Crane segment were $656.9 million, up 7.6 percent from $610.7 million in the second quarter of 2012, driven primarily by continued growth in the Americas region related to the increased activity with crawler cranes and large rough-terrain cranes, as well as solid results from Manitowoc Crane Care.

Crane segment operating earnings for the second quarter of 2013 were $65.0 million, up 25.0 percent compared to $52.0 million in the same period last year. This resulted in an operating margin of 9.9 percent for the second quarter of 2013, up from 8.5 percent in the same period in 2012. Second-quarter 2013 earnings were driven by higher sales volume as well as operational efficiencies that resulted from our global manufacturing strategy.

Crane segment backlog totaled $726 million as of June 30, a decrease of $50 million from the first quarter 2013. Second-quarter 2013 orders of $604 million were 6.2-percent greater than the first quarter of 2013, while slightly lower than the second quarter of 2012.

“Along with our second-quarter sales growth in the Cranes segment, we generated our highest operating margin since 2008, which is a testament to our improved operational efficiency and diligent management of our cost structure. Looking ahead, we will continue to innovate with a strong pipeline of new products and services, while also emphasizing our quality focus to enhance our crane designs and product reliability,” Tellock said. “This should enable Manitowoc to drive market share and capitalize on the improving health of the global macro environment in the coming years.”

The Manitowoc Company manufactures crawler cranes, tower cranes and mobile cranes for the heavy construction industry. In addition, Manitowoc is a leading provider of commercial foodservice equipment.